[Hector]

A friend was telling me the other day, his payslip is issued by an employment agency, he is outsorced to another company similar to HP but not on a contract basis but on a permanent basis. In another words, his employer is the employment agency but he works at their client's place.

Is there such a thing or did I misunderstand him. On his payslip, it even shows the client's name.

I thought employment agency only outsource on a contract basis on a 1 year or 2 year basis, never heard of employment agency hiring someone as a permanent staff but outsourced to another company. If there is such a thing, what is this called and why are companies opting for this.